Avenue Supermarts Q2 Updates: D-Mart Operator's Revenue Up 15%, Store Count Rises

D-Mart parent Avenue Supermarts Ltd.'s standalone revenue from operations rose 15.4% for the second straight quarter to Rs 16,218.8 crore, according to an exchange filing on Friday.

The company's store count in the second quarter of this fiscal rose to 432, while at the end of first quarter it was at 424 stores.

Earlier this month, UBS Global Research hiked Avenue Supermarts' target price and maintained a Buy rating on the stock because of its strong growth outlook. The brokerage said that DMart is a compounding growth story while stock provides a favourable risk-reward ratio.

UBS Global Research raised the target price to Rs 5,600 from Rs 5,050.

Despite the recent increase in the share price, the risk-reward ratio remained favourable, according to the brokerage. Its base case is a three-year revenue CAGR of 20% which limits any material valuation derating.

The bull case is that Avenue Supermarts can report 22% revenue growth because of faster network rollout and growth in DMart Ready, UBS Global Research said. This could imply potential upside to Rs 6,600 for the stock price.

D-Mart's net profit was flat in the first quarter of the financial year 2025-26, thereby missing the analysts' estimates by a significant margin.

The retailer's consolidated bottom line came in at Rs 772.81 crore during the quarter under review, down marginally by 0.1% as compared to Rs 773.68 crore in the year-ago period.

Revenue rose by 16.3% year-on-year for the three months ended June, reaching Rs 16,359.7 crore. Operating income, or earnings before interest, taxes, depreciation, and amortisation, rose 6% year-on-year to Rs 1,299.04 crore. The Ebitda margin contracted to 7.9%.

The business update was shared after market hours. The stock settled 0.71% lower at Rs 4,418.40 apiece on the NSE, compared to a 0.23% advance in the benchmark Nifty 50. The shares earlier during the day fell as much as 1.41% to Rs 4,387.10 per share.

D-Mart's shares have fallen 10.61% in the last 12 months and risen 24.05% year-to-date.

Out of 31 analysts tracking the company, 10 maintains a 'buy' rating, 10 recommend a 'hold' and 11 suggests 'sell', according to Bloomberg data. The average 12-month consensus price target of Rs 4,262.07 implies a downside of 3.5%.